Optional riders offer additional coverage and protection potential on selected annuities and may have an additional charge. Riders may not be available in all states. Guarantees and riders are subject to the claims paying ability of the issuing company.
Riders and Programs for Annuities
The Nationwide Lifetime Income Rider® (L.inc) can, for an additional cost, potentially offer guaranteed income for life through lifetime withdrawals, market participation and even a Joint Option for continuation of income for either survivng spouse, offered at an additional cost. Nationwide L.inc is targeted towards people who want the opportunity for:
- Lifetime income*
- A guarantee that your original income benefit base will increase by 7% simple interest annually for the first 10 years, or until you take your first lifetime withdrawal, whichever is sooner
* Your lifetime withdrawal amount is based on your income benefit base and age when you take your first lifetime withdrawal. You can take more than your lifetime withdrawal amount any year, but keep in mind that it will reduce your future lifetime withdrawal amounts. Also, when you add Nationwide L.inc, you have a defined number of investment options from which to choose.
As with most things in life, an annuity has limitations. If you take your money out early, you may face fees called surrender charges. Plus, if you're not yet 59½, you may also have to pay an additional 10% federal income tax penalty on top of ordinary income taxes. If you do take an early withdrawal, your death benefit and the contract value of the annuity contract will be reduced.